Mumbai: In order to make real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) more attractive, the Securities and Exchange Board of India (Sebi) on Wednesday said they will have to provide a mechanism for resolution of disputes with their shareholders and partners in the holding firm.
Sebi has also amended REITs and InvITs regulations to facilitate the growth of such trusts.
In separate notifications posted on its website, Sebi said: “Shareholders’ agreement or partnership agreement shall provide for an appropriate mechanism for resolution of disputes between the InvIT and the other shareholders or partners in the holdco and/or the SPV (special purpose vehicle)."
It said the provisions of these regulations will prevail in case of inconsistencies between such agreement and the obligations cast upon an InvIT and REIT.
With regard to InvIT, Sebi said the trust will have to file the final placement memorandum with Sebi within 10 working days from date of listing of the units issued therein.